Hosiden Corp., a key supplier to Nintendo Co., revised its fiscal 2026 projections upward following stronger-than-expected demand tied to the recently launched Switch 2 console. The Osaka-based electronics manufacturer now expects revenue of ¥428 billion ($2.85 billion), up from its previous ¥406 billion ($2.71 billion) forecast.
Operating profit projections also received a boost, climbing to ¥155 billion ($103 million) from ¥130 billion ($87 million). The company cited increased orders for amusement-related business, widely interpreted as Switch 2 components, as the primary driver behind the revision.
The earnings upgrade comes despite a challenging first quarter that highlighted Hosiden’s dependency on Nintendo business. While revenue more than doubled to ¥116.34 billion ($776 million), operating profit tumbled 45.5% to ¥2.39 billion ($16 million) due to unfavorable product mix.
More than half of Hosiden’s revenue comes from its Nintendo business, according to previous company disclosures, making the supplier particularly vulnerable to console cycle fluctuations. The company also benefited from reduced U.S. tariff burdens and lower foreign exchange losses in its updated guidance.
Nintendo’s Switch 2, which sold over 3.5 million units worldwide in its first four days following its June launch, appears to be driving sustained demand for Hosiden’s components. However, the supplier’s dramatic profit margin compression in the first quarter raises questions about pricing pressures in the competitive gaming hardware market.
